2005-12-29
The Board of the Bank of Lithuania was presented the report on foreign reserve management strategies and assumed level of risks with the aim of achieving Bank of Lithuania foreign reserve management targets.
The main objective in managing foreign reserves of the Bank of Lithuania is to ensure the amount of liquid financial resources that should be sufficient for undertaking interventions in the domestic currency market at any time in order to maintain the fixed exchange rate of the national currency against the anchor currency. To achieve this aim, foreign reserve management is primarily guided by liquidity and safety principles.
On compliance with the requirements of liquidity and safety, foreign reserves are managed adhering to the principle of return, i.e., they are invested so that the return on investment is the largest possible return over the long term.
The Board of the Bank of Lithuania intends to review the foreign reserves investment strategy in the light of market conditions.